Euro Struggles On Weak Data, Dollar Holds Firm

www.oann.com | 5/7/2017 | Staff
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SINGAPORE (Reuters) – The dollar held near 3-month highs against the euro on Thursday, benefiting from sustained strength in core U.S. inflation and weak data out of Europe.

Although headline U.S. inflation growth logged its weakest pace in 1-1/2-years in January, traders focused on the core price gauge, which was up for the third straight month and gave the dollar some impetus.

Greenback - Year - Shift - Stance - Federal

The greenback was hit earlier this year from a shift to a cautious stance by the Federal Reserve. The latest data suggested the central bank will need to stay vigilant on pricing pressures even as it adjusts policy imperatives in the face of heightened risks to growth.

“The trend in core US inflation remains steady, against some concerns of a potential decline..indeed at 2.2 percent YoY, the current reading is up from the 1.8 percent reading a year ago. Overall the data suggest that we cannot rule out a resumption of Fed rate hikes later in the year,” said Rodrigo Catril, senior currency strategist at NAB .

Dollar - Index - Gauge - Value - Versus

The dollar index, a gauge of its value versus six major peers, was marginally higher at 97.20, having gained 0.5 percent in the previous session. The index has rallied 1.7 percent so far this month, after two consecutive months of losses.

That contrasted with the wobbles in the euro. The single currency, which has around a 58 percent weighting in the dollar index, has tumbled 1.63 percent this month on the back of weaker-than-expected economic data out of...
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